All Credit Card Transactions To Be Reported to IRS

Originally posted by amatrine
For a lot of people , selling on ebay is the same as having a yard sale. We do not report what we sell at a yard sale, but to do it online now will require that.

We paid a tax when we bought the item, now we have to pay yet another one when we sell again. Whats wrong with that picture.

If the transactions were less than 10,000.00 and less than 200 transactions, third party settlement organizations do not need to report these to the IRS.

14 ‘‘(e) EXCEPTION FOR DE MINIMIS PAYMENTS BY
15 THIRD PARTY SETTLEMENT ORGANIZATIONS.—A third
16 party settlement organization shall not be required to re
17 port any information under subsection (a) with respect to
18 third party network transactions of any participating
19 payee if the amount which would otherwise be reported
20 under subsection (a)(2) with respect to such transactions
21 does not exceed $10,000 and the aggregate number of
22 such transactions does not exceed 200.

According to wiki, De Minimus means:

De minimis is a Latin expression meaning about minimal things, normally in the phrases de minimis non curat praetor or de minimis non curat lex, meaning that the law is not interested in trivial matters.[1]

In a more formal legal sense it means something that is unworthy of the law's attention.

I definitely agree that things should not be taxed multiple times, although this happens. But, in this case it appears the government is after legitimate businesses wishing to avoid paying taxes. If you have a garage sale on ebay, you "should" be safe from this legislation. I'm not a tax guy though, so I'd check it out with someone more knowledgeable in that area before filing

Originally posted by LostNemesis
So, does anyone know if Paypal and other payment processors need to report all past transactions on an account? Or, only everything starting today?

The proposal applies to returns for calendar years beginning after December 31, 2010. Back-up withholding provisions apply to amounts paid after December 31, 2011.

Ian, I think you are correct on the withholding issue


[edit on 27-7-2008 by Zarniwoop]

There's one easy answer to this...

Craigslist

reply to post by Zarniwoop


Thank you so much for the clarification of :
The proposal applies to returns for calendar years beginning after December 31, 2010. Back-up withholding provisions apply to amounts paid after December 31, 2011.

Looks like some of us got some time to cover stuff up before this takes effect. I have to suggest that if you are going to have a yard sale on ebay, maybe make the change to money orders. Then you shoul be ok. I know money orders are NOT as fast and convenient, and I won't even deal with someone who doesn't use Paypal, but there has to be ways to fight this coming police state. Perhaps even move to selling more on craigslist or ebay competitors without the use of paypal if this is your livelihood and you do not want the government involved.